Nasdaq 100 Forecast:
- The Nasdaq 100 has outperformed a Dow Jones and SP 500 counterparts in new weeks
- This trend competence be set to continue after Micron delivered an confident opinion due to quarantine
- Still, volatility stays heightened and a risk of a annulment reduce lingers
Nasdaq 100 Price Outlook: Micron Sees Quarterly Boost from Quarantine
The Nasdaq 100 has outperformed a Dow Jones and SP 500 in new weeks, notwithstanding a high bearing to a record industry. While a tech zone is typically one of a some-more volatile, some of a heading components like Apple, Microsoft and Google have been a pushing force behind a batch marketplace highs we enjoyed in Feb and were means to build poignant money land simultaneously.
Nasdaq 100 Price Chart: Daily Time Frame (March 2018 – Mar 2020)
On tip of their financial standings, many possess business models that are not only reliant on section and trebuchet operations that could see a reduced impact due to coronavirus relations to industries like sell or auto. In fact, some tech bonds have reported lifting forecasts due to a quarantine-linked boost in demand, namely a Boise-based semiconductor batch Micron.
Chart combined in TradingView
In a company’s second entertain gain news expelled Wednesday, Micron pronounced it “forecasts current-quarter income above analysts’ estimates on Wednesday and pronounced a swell in direct from information core operators could fuel supply shortages.” Similarly, it found “notebooks that support work-from-home and practical training are increasingly in demand.” Together, a singular marketplace landscape in a arise of supervision mandated quarantine has combined a silver backing for some record stocks.
In and with a properties of a altogether zone discussed previously, a tech-heavy Nasdaq 100 competence continue to outperform a Dow Jones and SP 500 in a days ahead. Therefore, arriving explanation from other record stocks, and semiconductor-producers specifically, could yield singular discernment amid a coronavirus outbreak. Unfortunately, gain deteriorate does not start in aspiring for another dual weeks, so evident updates will be few and distant between.
That being said, traders seeking equity bearing could try bullish positions on a Nasdaq while looking for bearish opportunities on a Dow or SP 500. While a 3 are rarely correlated, there is some grade of flaw that competence concede traders to gain on a relations outperformance of a Nasdaq should it continue. Still, such a plan would be costly to maintain. In a meantime, follow @PeterHanksFX on Twitter for updates.
–Written by Peter Hanks, Junior Analyst for DailyFX.com
Contact and follow Peter on Twitter @PeterHanksFX